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The Japanese tech titan SoftBank will invest $100 billion in the United States, creating at least 100,000 jobs, US President-elect Donald Trump said Monday, in a boost to his incoming administration.”This historic investment is a monumental demonstration of confidence in America’s future,” Trump said during a press conference at his Mar-a-Lago residence in Florida.  “It will help ensure that artificial intelligence, emerging technologies and other industries of tomorrow are built, created and grown right here in the USA,” added Trump, who takes office from US President Joe Biden next month.Speaking alongside Trump, SoftBank’s chief executive Masayoshi Son confirmed the investment company’s financial commitment and pledged to create 100,000 jobs, adding that Trump’s victory had “tremendously increased” his confidence in the American economy. “I am truly excited to make this happen,” added Son, 67.- Second commitment -The announcement from Son is around double the amount he committed SoftBank to in December 2016, shortly before Trump began his first term as president. The Japanese firm ultimately parted with close to $100 billion through its Vision Fund, with much of the money supplied by sovereign wealth funds in Saudi Arabia and the United Arab Emirates.”President Trump is a double-down president,” Son said on Monday, adding: “I’m going to have to double down.” Stephen Moore, an economic advisor to Donald Trump, said the announcement marked a “great day.””The importation of capital into the US is a huge leading indicator for jobs and prosperity to come,” Moore, an economist at the conservative Heritage Foundation, told AFP in a message.- Cutting red tape -Son made his name with successful early investments in Chinese e-commerce titan Alibaba and internet pioneer Yahoo, but has also bet on catastrophic failures such as WeWork.He has repeatedly said that “artificial superintelligence” will arrive in a decade, bringing new inventions, new medicine, new knowledge and new ways to invest.Last month, CNBC reported that ChatGPT creator OpenAI will enable its employees to sell shares worth roughly $1.5 billion to SoftBank.The SoftBank Group posted a bumper second-quarter net profit last month, returning to the black after net losses in the first quarter and the previous financial year.Son’s announcement is a boost to the incoming Trump administration, which takes office on January 20, 2025. On the campaign trail, Trump pledged to boost the US economy by cutting red tape and fast-tracking investments, including into the oil and gas sector.Some analysts have voiced concerns that several Trump proposals, such as slapping new tariffs on US imports and deporting millions of undocumented workers, could hurt growth and cause a spike in inflation.”The increased likelihood of substantial new tariffs on US imports would have the most consequential effect on economic growth,” economists at Wells Fargo wrote in a recent note to clients, adding they had “bumped up” their inflation outlook and slightly cut their GDP forecast.Other analysts say the level of economic pain caused by Trump’s tariff plans will largely depend on how widespread they are. “The impact on inflation need not be particularly significant for monetary policy,” economists at Goldman Sachs wrote in a recent investor note. But, they added “this could change if the White House imposes a 10% universal tariff,” referring to one of Trump’s proposals on the campaign trail. 

Global shares stalled Monday ahead of an expected US interest-rate cut later this week while concerns over political battles in Europe and China’s struggling economy sent other world markets lower.Wall Street offered little cheer as the Dow marked time although the tech-heavy Nasdaq and the broad-based S&P 500 were just in the green some two hours into trading.But Europe and Asia all lost ground as traders fret over political instability in France and Germany.Bitcoin, meanwhile, hit a new record high, reaching $107,115.89 as it continues to gain support from Donald Trump’s backing of cryptocurrencies.Investors are turning their attention to Wednesday’s US Federal Reserve decision on borrowing costs at its last policy meeting of the year before Trump takes office next month.The Fed is widely expected to cut its key lending rate for a third straight time, reducing it by a quarter point despite a recent uptick in inflation.But there are fears it will have to slow its pace of easing next year owing to sticky inflation and bets that Trump’s tax cuts and tariffs will reignite price increases.”It will come as no surprise to investors to hear that the final full week of trading in global markets in 2024 has started with more gains for the US while Europe struggles,” said Chris Beauchamp, chief market analyst at online trading platform IG, identifying a nascent “Santa rally” on Wall Street. Regarding Europe, he noted that “Germany is now set for elections early next year, promising to throw in a new ingredient to Europe’s heady brew of political instability.” Regarding France, while the country now has a new prime minister, “the problems he faces remain intractable”.Kathleen Brooks, research director at trading platform XTB, said meanwhile that there would be “an elephant in the room” at the Fed meeting.”How to accurately forecast economic activity and inflation rates, when the President-elect’s policies are expected to have a huge economic impact and could trigger more inflation?” she wrote.- China and Europe worries -Investors also tracked data showing that Chinese retail sales grew 3.0 percent last month, much slower than in October and well off the five percent forecast.Hong Kong and Shanghai stock markets closed lower after the data release while oil prices fell slightly on concerns over Chinese demand.Chinese officials have unveiled a string of aggressive measures in recent months aimed at bolstering growth in the world’s second-biggest economy.In Europe, the Paris stock market fell 0.7 percent after Moody’s downgraded France’s credit rating Saturday following months of political crisis and the appointment of centrist Francois Bayrou as prime minister.”The market is likely to watch closely to see how the political problems in France affect sentiment in the German economy,” said Jochen Stanzl, an analyst at CMC Markets.Frankfurt slid 0.5 percent as Germany’s embattled centre-left Chancellor Olaf Scholz lost a confidence vote, triggering elections set for February 23.The European Central Bank cut rates again last week as inflation appears to come under control and the eurozone economy shows signs of weakness.ECB chief Christine Lagarde said Monday that the bank would keep lowering interest rates, while warning that higher US tariffs under Trump could hit growth in the bloc.A closely watched survey released Monday showed that business activity declined further in the eurozone in December, though less sharply than the previous month thanks to an upturn in the services sector.In London, the UK government approved the £3.6 billion ($4.5 billion) takeover of Royal Mail’s parent company, International Distribution Services (IDS), by Czech billionaire Daniel Kretinsky’s EP Group.IDS shares added 0.8 percent.- Key figures around 1645 GMT -New York – Dow: FLAT at 43,815.96 pointsNew York – S&P 500: UP 0.3 percent at 6,071.18New York – Nasdaq: UP 0.8 percent at 20,083.95Paris – CAC 40: DOWN 0.7 percent at 7,357.08 (close)Frankfurt – DAX: DOWN 0.5 percent at 20,313.81 (close)London – FTSE 100: DOWN 0.5 percent at 8,262.05 (close)Tokyo – Nikkei 225: FLAT at 39,457.49 (close)Hong Kong – Hang Seng Index: DOWN 0.9 percent at 19,795.49 (close)Shanghai – Composite: DOWN 0.2 percent at 3,386.33 (close)Euro/dollar: UNCHANGED at $1.0504 from FridayPound/dollar: UP at $1.2690 from $1.2622Dollar/yen: UP at 154.24 yen from 153.60 yen Euro/pound: DOWN at 82.76 pence from 83.19 penceWest Texas Intermediate: DOWN 0.9 percent at $70.63 per barrelBrent North Sea Crude: DOWN 0.9 percent at $73.86 per barrel

The head of Japan’s SoftBank is set to announce plans on Monday to invest $100 billion in the United States over the next four years, a spokesperson for US President-elect Donald Trump’s transition team told AFP.SoftBank’s billionaire chief executive Masayoshi Son and Trump are expected to jointly announce the planned investment at the president-elect’s Mar-a-Lago residence in Florida later in the day, according to US media reports.SoftBank did not immediately respond to a request for comment. The announcement from Son, 67, would be around double the amount he committed SoftBank to in December 2016, shortly before Trump began his first term as US president. The Japanese investment behemoth ultimately parted with close to $100 billion through its Vision Fund, with much of the money supplied by sovereign wealth funds in Saudi Arabia and the United Arab Emirates. Son made his name with successful early investments in Chinese ecommerce titan Alibaba and internet pioneer Yahoo, but has also bet on catastrophic failures such as WeWork.Son has repeatedly said that “artificial superintelligence” will arrive in a decade, bringing new inventions, new medicine, new knowledge and new ways to invest.

Wall Street shares mostly rose Monday ahead of an expected US interest-rate cut later this week while concerns over political battles in Europe and China’s struggling economy sent other world markets lower.Bitcoin, meanwhile, hit a new record high at $106,493.43 as it continues to gain support from Donald Trump’s backing of cryptocurrencies.In New York, the tech-heavy Nasdaq and the broad-based S&P 500 were up in morning deals while the Dow was flat following a lacklustre performance last week.Investors are turning their attention to Wednesday’s US Federal Reserve decision on borrowing costs at its last policy meeting of the year before Trump takes office next month.The Fed is widely expected to cut its key lending rate for a third straight time, reducing it by a quarter point despite a recent uptick in inflation.But there are fears it will have to slow its pace of easing next year owing to sticky inflation and bets that Trump’s tax cuts and tariffs will reignite prices.Kathleen Brooks, research director at trading platform XTB, said there would be “an elephant in the room” at the Fed meeting:”How to accurately forecast economic activity and inflation rates, when the President elect’s policies are expected to have a huge economic impact and could trigger more inflation.”- China and Europe worries -Investors also tracked data showing Chinese retail sales grew 3.0 percent last month, much slower than October and well off the five-percent forecast.Hong Kong and Shanghai indices closed lower after the data release while oil prices fell slightly on concerns over Chinese demand.Chinese officials have unveiled a string of aggressive measures in recent months aimed at bolstering growth in the world’s second biggest economy.In Europe, the Paris stock market dropped after Moody’s downgraded France’s credit rating Saturday following months of political crisis and the appointment of centrist Francois Bayrou as prime minister.”The market is likely to watch closely to see how the political problems in France affect sentiment in the German economy,” said Jochen Stanzl, analyst at CMC Markets.Frankfurt fell as Germany’s embattled centre-left Chancellor Olaf Scholz faced a confidence vote that was expected to trigger the process towards February 23 elections.The European Central Bank cut rates again last week as inflation appears to come under control and the eurozone economy shows signs of weakness.ECB chief Christine Lagarde said Monday the bank would keep lowering interest rates, and she warned that higher US tariffs under Trump could hit growth in the bloc.A closely-watched survey showed Monday business activity declined further in the eurozone in December, though less sharply than the previous month thanks to an upturn in the services sector.On the corporate front, three spinoffs from French right-wing tycoon Vincent Bollore’s Vivendi media empire debuted on stock markets, with mixed results.Shares in the Canal+ television and film group tanked by around 20 percent in London.The other two spinoffs had a better start: Book publisher Louis Hachette soared almost 27 percent on the Euronext Growth in Paris while advertising agency Havas was up 1.2 percent in Amsterdam in afternoon deals.Shares in the remaining Vivendi company, which stayed on the Paris stock exchange, was up more than three percent.In London, the UK government approved the £3.6 billion ($4.5 billion) takeover of Royal Mail’s parent company, International Distribution Services (IDS), by Czech billionaire Daniel Kretinsky’s EP Group.IDS shares were up 0.8 percent.- Key figures around 1445 GMT -New York – Dow: FLAT at 43,830.77 pointsNew York – S&P 500: UP 0.2 percent at 6,063.22New York – Nasdaq: UP 0.4 percent at 19,995.99Paris – CAC 40: DOWN 0.8 percent at 7,350.78Frankfurt – DAX: DOWN 0.4 percent at 20,327.68London – FTSE 100: DOWN 0.4 percent at 8,271.35Tokyo – Nikkei 225: FLAT at 39,457.49 (close)Hong Kong – Hang Seng Index: DOWN 0.9 percent at 19,795.49 (close)Shanghai – Composite: DOWN 0.2 percent at 3,386.33 (close)Euro/dollar: DOWN at $1.0491 from $1.0504 on FridayPound/dollar: UP at $1.2651 from $1.2622Dollar/yen: UP at 154.14 yen from 153.60 yen Euro/pound: DOWN at 82.99 pence from 83.19 penceWest Texas Intermediate: DOWN 0.3 percent at $71.06 per barrelBrent North Sea Crude: DOWN 0.1 percent at $71.05 per barrel

Malaysian automaker Proton unveiled the country’s first locally-produced electric vehicle on Monday, after the government pledged to boost EV uptake on the roads.Proton — which is backed by Chinese automotive giant Geely — launched the e.MAS 7 SUV at the Malaysia International Trade and Exhibition Centre in Kuala Lumpur.The cheapest e.MAS 7 will be priced at 105,800 ringgit ($23,700), whilst a top-of-the-range model will retail for 123,800 ringgit.Cars produced by China’s BYD and Elon Musk’s Tesla brand are already available in Malaysia, but the government has announced plans for EVs to make up 20 percent of new vehicle sales by 2030.Geely owns 49.9 percent of Proton and last year announced a $10 billion investment in the firm’s plant in Tanjong Malim — 50 kilometres (30 miles) north of Kuala Lumpur.”It is hoped that the e.MAS 7 EV model can promote our ability to produce quality electric vehicles,” Prime Minister Anwar Ibrahim said at the vehicle’s launch.Local automotive analyst Nicholas King said the low cost may spur the government’s electrification plans. “The price… is sure to shake up the local EV market,” said King, a senior editor at car website KeyAuto.my.

Major stock markets and oil prices retreated Monday after an unexpected slowdown in retail sales reinforced worries about China’s struggling economy.The dollar mostly rose as traders looked ahead to interest-rate decisions this week from the US Federal Reserve, Bank of Japan and Bank of England.Bitcoin hit a new record high at $106,493.43.”China remained the central focus for Asian markets in another show of economic weakness which sent markets lower,” noted Richard Hunter, head of markets at Interactive Investor.”The highlight of the week… will be the interest rate decision from the Fed on Wednesday.”Observers also tracked developments in Seoul after South Korean lawmakers impeached President Yoon Suk Yeol at the weekend in the wake of his short-lived declaration of martial law this month.Hong Kong and Shanghai indices closed lower after figures showed that Chinese retail sales grew 3.0 percent last month, much slower than October and well off the five-percent forecast.The figures highlighted the work China’s leaders had in store as they try to kickstart consumption and reignite the world’s number two economy.Officials unveiled new promises at the weekend to boost the battered property sector and tweak monitoring of equity markets.That came after investors were left unimpressed last week with Beijing’s pledge to introduce measures aimed at “lifting consumption vigorously” as part of a stimulus drive.- France downgrade -In Europe, the Paris stock market dropped after Moody’s downgraded France’s credit rating Saturday, following months of political crisis and the appointment of centrist Francois Bayrou as prime minister.European Central Bank chief Christine Lagarde on Monday said eurozone policymakers would keep lowering interest rates and warned that higher US tariffs under President-elect Donald Trump could hit growth in the bloc.The ECB cut rates again last week as inflation looked to be coming under control and the eurozone economy showed signs of weakness.The Fed is widely expected to cut interest rates again Wednesday but there are fears it will have to slow its pace of easing next year owing to sticky inflation and bets that Trump’s tax cuts and tariffs will reignite prices.On the corporate front, three spinoffs from French right-wing tycoon Vincent Bollore’s Vivendi media empire debuted on stock markets, with mixed results.Shares in the Canal+ television and film group tanked 15 percent in London.The other two spinoffs had a better start: Book publisher Louis Hachette soared 25 percent on the Euronext Growth in Paris while advertising agency Havas was up six percent in Amsterdam.Shares rose in the remaining Vivendi company, which stayed on the Paris stock exchange.Elsewhere, Britain’s centuries-old Royal Mail is set to pass into foreign ownership after the UK government approved the takeover of its parent company by Czech billionaire Daniel Kretinsky’s EP Group.The takeover of International Distribution Services is worth £3.6 billion ($4.5 billion). IDS shares climbed nearly one percent in late morning deals.- Key figures around 1115 GMT -Paris – CAC 40: DOWN 0.9 percent at 7,345.84 pointsFrankfurt – DAX: DOWN 0.4 percent at 20,329.16London – FTSE 100: DOWN 0.4 percent at 8,267.15Tokyo – Nikkei 225: FLAT at 39,457.49 (close)Hong Kong – Hang Seng Index: DOWN 0.9 percent at 19,795.49 (close)Shanghai – Composite: DOWN 0.2 percent at 3,386.33 (close)New York – Dow: DOWN 0.2 percent at 43,828.06 (close)Euro/dollar: DOWN at $1.0490 from $1.0504 on FridayPound/dollar: UP at $1.2646 from $1.2622Dollar/yen: UP at 153.83 yen from 153.60 yen Euro/pound: DOWN at 82.94 pence from 83.19 penceWest Texas Intermediate: DOWN 1.2 percent at $70.45 per barrelBrent North Sea Crude: DOWN 1.0 percent at $73.77 per barrel

Most markets fell on Monday after an unexpected slowdown in retail sales reinforced worries about China’s economy, with the latest batch of weak data compounding the disappointment of Beijing’s latest stimulus pledges.The tepid start came on the year’s last full week of trading, with the focus on key monetary policy decisions by the US Federal Reserve and the Bank of Japan.Observers are also tracking developments in Seoul after South Korean lawmakers impeached President Yoon Suk Yeol at the weekend in the wake of his short-lived declaration of martial law this month.Hong Kong and Shanghai sank after figures showed that Chinese retail sales grew 3.0 percent last month, much slower than October and well off the five percent forecast.The figures highlighted the work leaders had in store as they try to kickstart consumption and reignite the world’s number two economy.Officials unveiled new promises at the weekend to boost the battered property sector and tweak monitoring of equity markets.That came after investors were left unimpressed last week with Beijing’s pledge to introduce measures aimed at “lifting consumption vigorously” as part of a stimulus drive.President Xi Jinping and other key players said at the annual Central Economic Work Conference they would implement a “moderately loose” monetary policy, increase social financing and reduce interest rates “at the right time”.Lynn Song, ING’s chief economist for Greater China, said in a commentary: “Household confidence clearly remains soft, and it remains to be seen if the ‘vigorous support’ for consumption promised next year will be effective in stimulating a recovery.”We expect the rollout of supportive policies could take some time, but overall retail sales growth should recover in 2025.”Elsewhere in Asia, there were also losses in Sydney, Mumbai, Bangkok, Manila and Jakarta, though Singapore, Wellington and Taipei rose. Tokyo was flat.London and Frankfurt opened lower, while Paris also retreated after French President Emmanuel Macron named centrist Francois Bayrou as prime minister on Friday as he looks to end months of political crisis.Seoul fluctuated after Saturday’s impeachment of Yoon, with South Korea’s Constitutional Court starting proceedings Monday to determine whether to uphold the vote.While the martial law crisis shocked markets, observers said the economic impact would likely be limited, with some suggesting a stimulus package could be implemented in the new year.The Fed is widely expected to cut interest rates again Wednesday but there are fears it will have to slow its pace of easing next year owing to sticky inflation and bets that president-elect Donald Trump’s tax cuts and tariffs will reignite prices.The gathering comes after figures last week showed the consumer price index ticked up and wholesale prices accelerated.Investors are now pricing in a more than 75 percent chance the Fed holds rates steady in January, according to the CME FedWatch tool.The Bank of Japan is due to deliver its own policy decision after that, with debate swirling on whether officials will announce a third hike of the year, having moved in March for the first time since 2007 as price pressures continue to build.”The Bank of Japan will likely tighten monetary policy on Thursday,” said economists at Moody’s Analytics, pointing to a 25 basis-point lift.”The central bank is worried that yen weakness might spur inflation, hurting real wages and consumer spending.”But Tony Sycamore, an analyst at the IG trading group, said expectations were for officials to hold rates at 0.25 percent.However, he added that “the central bank’s current inaction is unlikely to persist, with any rate hold expected to come with strong forward guidance signalling a potential January hike”.”Broadening underlying pricing pressures, such as service prices, continue to point towards a more persistent inflationary trend. This environment suggests conditions are ripe for another rate hike, reinforcing expectations for tighter policy down the line.”On currency markets, the dollar rose against the yen.- Key figures around 0810 GMT -Tokyo – Nikkei 225: FLAT at 39,457.49 (close)Hong Kong – Hang Seng Index: DOWN 0.9 percent at 19,795.49 (close)Shanghai – Composite: DOWN 0.2 percent at 3,386.33 (close)London – FTSE 100: DOWN 0.1 percent at 8.296,17Euro/dollar: UP at $1.0506 from $1.0504 on FridayPound/dollar: UP at $1.2634 from $1.2622Dollar/yen: DOWN at 153.54 yen from 153.60 yen Euro/pound: DOWN at 83.16 pence from 83.19 penceWest Texas Intermediate: DOWN 0.5 percent at $70.92 per barrelBrent North Sea Crude: DOWN 0.4 percent at $74.19 per barrelNew York – Dow: DOWN 0.2 percent at 43,828.06 (close)

Asian markets mostly fell Monday after an unexpected slowdown in retail sales reinforced worries about China’s economy, with the latest batch of weak data compounding the disappointment of Beijing’s latest stimulus pledges.The tepid start came on the year’s last full week of trading, with the focus on key monetary policy decisions by the US Federal Reserve and the Bank of Japan.Observers are also tracking developments in Seoul after South Korean lawmakers impeached President Yoon Suk Yeol at the weekend in the wake of his short-lived declaration of martial law this month.Hong Kong and Shanghai slipped after figures showed that Chinese retail sales grew 3.0 percent last month, much slower than October and well off the five percent forecast. The figures highlighted the work leaders had in store as they try to kickstart consumption and reignite the world’s number two economy.Officials unveiled new promises at the weekend to boost the battered property sector and tweak monitoring of equity markets.That came after investors were left unimpressed last week with Beijing’s pledge to introduce measures aimed at “lifting consumption vigorously” as part of a stimulus drive.President Xi Jinping and other key players said at the annual Central Economic Work Conference they would implement a “moderately loose” monetary policy, increase social financing and reduce interest rates “at the right time”.Elsewhere in Asia, there were also losses in Sydney, Wellington, Manila and Jakarta, though Tokyo, Singapore and Taipei rose.Seoul fluctuated after Saturday’s impeachment of Yoon, with South Korea’s Constitutional Court starting proceedings Monday to determine whether to uphold the vote.While the martial law crisis shocked markets, observers said the economic impact would likely be limited, with some suggesting a stimulus package could be implemented in the new year.The Fed is widely expected to cut interest rates again Wednesday but there are fears it will have to slow its pace of easing next year owing to sticky inflation and bets that president-elect Donald Trump’s tax cuts and tariffs will reignite prices.The gathering comes after figures last week showed the consumer price index ticked up and wholesale prices accelerated.Investors are now pricing a more-than-75 percent chance the Fed holds rates steady in January, according to the CME FedWatch tool.The Bank of Japan is due to deliver its own policy decision after that, with debate swirling on whether officials will announce a third hike of the year, having moved in March for the first time since 2007 as price pressures continue to build.”The Bank of Japan will likely tighten monetary policy on Thursday,” said economists at Moody’s Analytics, pointing to a 25 basis-point lift.”The central bank is worried that yen weakness might spur inflation, hurting real wages and consumer spending.”But Tony Sycamore, an analyst at the IG trading group, said expectations were for officials to hold rates at 0.25 percent.However, he added that “the central bank’s current inaction is unlikely to persist, with any rate hold expected to come with strong forward guidance signalling a potential January hike”.”Broadening underlying pricing pressures, such as service prices, continue to point towards a more persistent inflationary trend. This environment suggests conditions are ripe for another rate hike, reinforcing expectations for tighter policy down the line.”On currency markets, the dollar rose against the yen Monday.- Key figures around 0230 GMT -Tokyo – Nikkei 225: UP 0.2 percent at 39,533.55 (break)Hong Kong – Hang Seng Index: DOWN 0.4 percent at 19,888.97Shanghai – Composite: DOWN 0.1 percent at 3,388.34Euro/dollar: UP at $1.0515 from $1.0504 on FridayPound/dollar: UP at $1.2634 from $1.2622Dollar/yen: UP at 153.96 yen from 153.60 yen Euro/pound: UP at 83.31 pence from 83.19 penceWest Texas Intermediate: DOWN 0.4 percent at $71.03 per barrelBrent North Sea Crude: DOWN 0.3 percent at $74.30 per barrelNew York – Dow: DOWN 0.2 percent at 43,828.06 (close)London – FTSE 100: DOWN 0.1 percent at 8,300.33 (close)

Wall Street stocks finished a lackluster week on a muted note Friday as concerns about rising Treasury bond yields competed with enthusiasm over artificial intelligence equities.Of the major indices, only the Nasdaq mustered a gain in Friday’s session. The tech-rich index was also the only of the three leading US benchmarks to conclude the week higher.”Equities are kind of treading water,” said LBBW’s Karl Haeling. “A negative influence to some extent is the rise in bond yields.”The latest US consumer price index data released this week showed prices ticked higher in November and the wholesale data also showed stubborn inflationary pressures.”Yields rose to their highest levels in over two weeks as markets brace for the Federal Reserve’s final meeting of the year, reflecting concerns over sticky inflation,” said Chris Beauchamp, chief market analyst at online trading platform IG.There is also growing concern over the inflationary pressures from President-elect Donald Trump’s pledges to cut taxes and impose tariffs, as inflation still stands above the Fed’s target.”While the markets still anticipate a rate cut from the Federal Reserve next week, the likelihood of a move in January has dropped,” said Patrick Munnelly, partner at broker Tickmill Group.The CME FedWatch tool shows the market sees a more than 75 percent chance that the Fed will hold rates steady in January.In Europe, the Paris CAC 40 index ended the day down 0.2 percent after French President Emmanuel Macron named his centrist ally Francois Bayrou as prime minister, ending days of deadlock over finding a replacement for Michel Barnier.Frankfurt also dipped, with Germany’s central bank sharply downgrading its growth forecasts on Friday for 2025 and 2026. It predicted a prolonged period of weakness for Europe’s biggest economy.London stocks were also lower after official data showed that the UK economy unexpectedly shrank for the second consecutive month in October.The euro recovered after flirting with two-year lows against the dollar following a warning Thursday by ECB president Christine Lagarde that the eurozone economy was “losing momentum”, cautioning that “the risk of greater friction in global trade could weigh on euro area growth”.In Asia, Hong Kong and Shanghai both tumbled as investors were unimpressed with Beijing’s pledge to introduce measures aimed at “lifting consumption vigorously” as part of a drive to reignite growth in the world’s number two economy.President Xi Jinping and other key leaders said at the annual Central Economic Work Conference they would implement a “moderately loose” monetary policy, increase social financing and reducing interest rates “at the right time”.The gathering came after Beijing in September began unveiling a raft of policies to reverse a growth slump that has gripped the economy for almost two years.”We’re still not convinced that policy support will prevent the economy from slowing further next year”, said Julian Evans-Pritchard, head of China economics at research group Capital Economics.Among individual equities, chip company Broadcom surged nearly 25 percent after reporting a 51 percent jump in quarterly revenues to $14.1 billion behind massive growth in AI-linked business.- Key figures around 2140 GMT -New York – Dow: DOWN 0.2 percent at 43,828.06 (close)New York – S&P 500: FLAT  at 6,051.09 (close)New York – Nasdaq Composite: UP 0.1 percent at 19,926.72 (close)London – FTSE 100: DOWN 0.1 percent at 8,300.33 (close)Paris – CAC 40: DOWN 0.2 percent at 7,409.57 (close)Frankfurt – DAX: DOWN 0.1 percent at 20,405.92 (close)Tokyo – Nikkei 225: DOWN 1.0 percent at 39,470.44 (close)Hong Kong – Hang Seng Index: DOWN 2.1 percent at 19,971.24 (close)Shanghai – Composite: DOWN 2.0 percent at 3,391.88 (close)Euro/dollar: UP at $1.0504 from $1.0467 on ThursdayPound/dollar: DOWN at $1.2622 from $1.2673Dollar/yen: UP at 153.60 yen from 152.63 yen Euro/pound: UP at 83.19 pence from 82.59 penceBrent North Sea Crude: UP 1.5 percent at $74.49 per barrelWest Texas Intermediate: UP 1.8 percent at $71.29 per barrelburs-jmb/st

The UK, Italy and Japan on Friday launched a joint venture to develop a supersonic next-generation fighter jet by 2035, replacing the Eurofighter Typhoon.Britain’s BAE Systems, Italy’s Leonardo and Japan Aircraft Industrial Enhancement Co Ltd (JAIEC) will each hold a 33.3 percent share in the new venture, “marking a pivotal moment for the international aerospace and defence industry,” they announced in a press release.JAIEC is a firm jointly funded by Mitsubishi Heavy Industries (MHI) and the Society of Japanese Aerospace Companies.”Today’s agreement is a culmination of many months working together with our industry partners and is testament to the hard work of everyone involved in this strategically important programme,” said Charles Woodburn, BAE Systems Chief Executive.The venture will “bring together the significant strengths and expertise of the companies involved to create an innovative organisation that will lead the way in developing a next generation combat air system, creating long-term, high value and skilled jobs across the partner nations for decades to come,” he added.The three partners have agreed to form a new company under the Global Combat Air Programme (GCAP), a multinational initiative established by the UK, Japan and Italy in 2022 to develop a sixth-generation stealthfighter to replace the Typhoon and Japanese F-2.The joint venture is expected to be established by the middle of 2025 and will undertake the design and development of the GCAP aircraft.It will subcontract the manufacturing and final assembly of the aircraft to BAE Systems, Leonardo, MHI and the wider supply chain.The aircraft is due to enter service in 2035, ahead of the competing European project FCAS — led by Paris, Berlin and Madrid — and is expected to be in service until 2070. – China, Russia threats -The new company will be headquartered in the UK and its first CEO, whose name has not been announced, will be Italian. “The way might not always be simple and straightforward. However, I believe that through continuing the strong spirit of trilateral cooperation and collaboration… we will not only deliver the GCAP on time but also at a level that exceeds all of our expectations,” said JAIEC president Kimito Nakae.The Italian defence ministry has already allocated 8.8 billion euros ($9.2 billion) to the program, Roberto Cingolani, the CEO of Leonardo, said in November, although the total budget of the project has yet to be revealed. Italy’s Defence Minister Guido Crosetto hailed the announcement as an “important step” and “a remarkable example of the strong international cooperation between our nations”.GCAP aims to counter the threats posed by Russia and China and will merge two different aircraft program — the UK and Italy’s “Tempest” and Japan’s “F-X”.The objective is to develop a twin-engine stealth aircraft that could be operated with or without a crew, would boast features such as laser-directed weapons and a virtual cockpit and would be much harder to detect using radar and infrared.New technologies being explored for Tempest include the integration of AI and augmented reality and the ability to conduct missions alongside drones.Visiting the Farnborough Air Show in July, where a model of the aircraft was unveiled, British Prime Minister Keir Starmer stressed “just how important a program this is” for the country. But Mike Schoellhorn, the CEO of Airbus Defence and Space, said in July that the competition between GCAP and FCAS was “not logical”. Cingolani has not ruled out a possible rapprochement. “I’m not saying merging, maybe this is too much, but for sure some collaboration. It’s too early to say, we’re just at the beginning,” he told AFP.